FRANKFURT May 8 German reinsurer Munich Re
reported a 4.6 percent drop in net profit in the
first quarter, as premium income fell amid a broad-based market
decline in reinsurance prices.
Quarterly net profit after minorities fell to 919 million
euros ($1.28 billion) from 963 million a year earlier, the
world's largest reinsurer said in a statement.
Munich Re reiterated its target of earning net profit of 3
billion in the full year and the quarterly result was slightly
better than an preliminary report by chief executive Nikolaus
von Bomhard, who told a shareholder meeting on April 30 that it
would be around 900 million euros.
Gross written premiums fell 2.7 percent to 12.9 billion
Munich Re and other reinsurers are battling fierce
competition from alternative capital investors like pension
funds, who are helping to drive down prices in the reinsurance
($1 = 0.7183 Euros)
(Reporting by Jonathan Gould)